01-08-2025
BWYS to sell Banting industrial properties for RM67mil
BWYS Group Bhd managing director Kang Beng Hai
KUALA LUMPUR: BWYS Group Bhd has entered into a sale and purchase agreement with Yusin Machinery (Malaysia) Sdn Bhd for the proposed disposal of industrial properties in Banting, Selangor for RM67mil cash.
In a statement, the sheet metal products manufacturer and scaffoldings supplier said the properties are located at Kawasan Perindustrian Olak Lempit, Banting, Selangor, on a developed industrial land measuring approximately 339,386 square feet.
The site comprises three blocks of four-storey office buildings, three blocks of single-storey detached factory buildings, and an ancillary structure.
BWYS said the proposed disposal is expected to yield a gain of approximately RM33.8mil for the group, to be recognised in the next financial year ending Dec 31, 2026.
Managing director Kang Beng Hai said the properties were acquired in January 2019 for RM28mil, and the current offer presents a timely opportunity for the group to unlock meaningful value from the investment.
'The proceeds will be applied towards supporting our ongoing operations and enhancing overall business efficiency. This move allows us to reallocate resources in a way that aligns with our broader business strategy, ensuring we remain well-positioned to capture opportunities and sustain our growth momentum in the coming years,' he said.
Of the RM67mil in proceeds, RM37.9mil will go toward repaying bank borrowings, saving the group about RM1.1mil in annual interest.
Another RM24mil will fund raw material purchases and operations, while RM5.1mil is allocated for estimated disposal-related expenses.
The proposed disposal is expected to be completed in the first quarter of 2026, pending shareholders' approval at an upcoming extraordinary general meeting and relevant regulatory approvals.
